Dutch airline KLM on Thursday introduced a sweeping bundle of “agency” cost-cutting measures it hopes will result in a lift in working earnings of round 450 million euros ($496 million) “within the quick time period.”
There was no particular point out of job cuts, however the firm vowed to “discover choices for outsourcing, divesting or discontinuing actions that don’t straight contribute to flight operations.”
KLM stated it will rethink and postpone all new funding, together with its new headquarters and engineering buildings.
Labour productiveness must be boosted by not less than 5 p.c by subsequent yr, through automation, mechanisation and decreasing absenteeism, in response to the agency.
“We’ll do every little thing we will to take care of our community and providers for our clients and defend jobs all through our firm,” stated airline CEO Marjan Rintel in a press release.
“That is painful for each KLM colleague, however it’s mandatory, and it needs to be achieved now,” added Rintel.
In line with its final set of outcomes, mixed with accomplice airline Air France, the group’s second-quarter revenue stood at 165 million euros — nicely beneath forecasts.
A drop in passenger visitors because of the Paris Olympics hammered ticket gross sales, as vacationers prevented the French capital in the course of the Video games.
